Question 20 Chapter 4 of +2-B
Table of Contents
Current Ratio and Quick Ratio
20. X Ltd. has Current Ratio of a 3.5: 1 and Quick Raito of 2: 1. If the
Inventories are Rs. 24,000; calculate total Current Liabilities and Current
Assets.
The solution of Question 20 Chapter 4 of +2-B: –
Current Ratio | = | Current Assets | = | 3.5 |
Current Liabilities | 1 |
Quick Ratio | = | Quick Assets | = | 2 |
Current Liabilities | 1 |
Let Current Liabilities | = | x |
Current Assets | = | 3.5x |
Quick Assets | = | 2x |
Inventories | = | Current Assets – Quick Assets |
Rs. 24,000 | = | 3.5x – 2x |
Rs. 24,000 | = | 1.5x |
x | = | Rs. 16,000 |
Current Liabilities | = | X = Rs. 16,000 |
Current Assets | = | 3.5 x Rs.16,000 |
= | Rs. 56,000 |
Balance Sheet: Meaning, Format & Examples
Thanks, Please Like and share with your friends
Advertisement-X
Comment if you have any question.
Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Leave a Reply